Building shareholder value: Translating environmental performance into profits

Corporate Environmental Strategy

Volumn 5, Issue 5, 1998, Pages 50-59

  Kiernan, Matthew J ^a,b  

^a UNIVERSITY OF PENNSYLVANIA   (United States)

^b IMD   (Switzerland)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 0142044526     PISSN: 10667938     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (15)

1. See, for example, World Business Council for Sustainable Development, Environmental Performance and Shareholder Value, 1997.
2. "Eco-efficiency" is briefly defined here as a company's ability to create greater shareholder value with lower levels of resource inputs and environmental risk than its industry competitors. For recent analyses of the relationship between environmental performance and shareholder value, consult Bank Sarasin/WWZ, Environmental Shareholder Value, February 1998; P. Soyka and S. Feldman, "Capturing the Business Value of EH & S Excellence," Corporate Environmental Strategy, Winter, 1998, pp. 61-68;
3. European Federation of Financial Analysts, Eco-Efficiency and Financial Analysis: The Financial Analysts View, 1996; IGF Kaiser,
4. Does Improving a Firm's Environmental Management System and Environmental Performance Result in a Higher Stock Price? 1996; and Center for the Study of Financial Innovation, Measuring Environmental Risk, London; 1994.
5. See, for example, Richard Clough, "Impact of an Environmental Screen on Portfolio Performance: A Comparative Analysis of S&P Stock Returns," Duke University, 1997;
6. U.S. Environmental Protection Agency, "Environmentally Screened Index Investing," November 1996;
7. Mark A. White, "Corporate Environmental Performance and Shareholder Value," University of Virginia, McIntire School of Commerce, November 1995;
8. Stuart L. Hart and Gautam Ahuja, "An Empirical Examination of the Relationship Between Pollution Prevention and Firm Performance," University of Michigan, School of Business Administration, September 1994;
9. and Jonathan Snyder, C.F.A et al., "The Performance Impact of an Environmental Screen," Winslow Management Company/Eaton Vance, 1993.
10. U.S. Federal Reserve. Flow of Funds, 4th Quarter, 1997. March 13,1998. pp. 62-92.
11. See Clough et al., op cit.
12. Frankel, C. In Earth's Company, Stony Creek, CT. New Society Publishers. 1998. p.42.
13. United Nations Development Program. Valuing the Environment: How Fortune 500 (CFOs) and Analysts Measure Corporate Performance. New York. November 1997.
14. Modem financial analysis arguably had its intellectual genesis in the development of double-entry bookkeeping by the Italian monks in the late 1400s.
15. See Richard Clough et al., op. cit.